Sales grow for caterer Compass as workers opt for canteen lunches
Shares in the group were up by as much as 5% on Tuesday morning.
Your support helps us to tell the story
Our mission is to deliver unbiased, fact-based reporting that holds power to account and exposes the truth.
Whether $5 or $50, every contribution counts.
Support us to deliver journalism without an agenda.
Louise Thomas
Editor
Catering company Compass has seen its share price rise after revealing a jump in sales and raising its profit expectations for the year.
Shares in the group were up by as much as 5% on Tuesday morning after investors were updated on its sales performance in recent months.
Revenues jumped by a tenth in the three months to the end of June, compared with the same period last year, the firm said.
This is despite its prices rising more slowly thanks to inflation easing more widely, it said.
Compass, which provides food services to millions of people every day, including in schools and universities, businesses and for events, said it was benefiting from offering better value for money compared with the high street.
It suggests a trend toward people opting to eat in canteens than in more expensive restaurants.
Earlier this year, the London-listed company said people returning to the office during the week, particularly on a Monday, since Covid had helped drive higher sales.
Compass said good levels of growth across all the regions it caters – including the US, Europe and Asia – means it is now expecting its underlying operating profit to increase by more than 15% for the full year.
It marks the second upgrade this year to its earnings outlook.
The firm is also expecting its yearly revenues to rise by at least 10%.
Dan Coatsworth, an investment analyst for AJ Bell, said the company sees “plenty more business to go after, with a large chunk of catering still done in-house”.
“Compass has navigated the inflationary pressures of the last few years effectively through a combination of menu management, efficiencies and passing on costs where feasible,” he said.
“Its offering remains below high street prices – conveying a material advantage.
“It has also increased its presence in more defensive industries like healthcare and education which should make revenue and earnings more predictable.”